Will Packaging Cause Your Next Supply Chain Disruption?
A fully traceable supply chain can reduce costs and increase productivity. In order to achieve that, brands and retailers must factor in the role of packaging, a critical and often overlooked link in the supply chain that connects manufacturers, prescribers, dispensers and patients.
The pharmaceutical industry has seen an expansion of injectable medications that are packed in vials and prefilled syringes, as well as a movement toward more personalized medication packaging. The supply chain slowdown has impacted equipment orders, delaying deliveries and extending lead times.
Packaging Disruptions to Raw Materials
The global pharmaceutical packaging market size is projected to reach $196.8 billion by 2026 from $99.9 billion in 2021, at a compound annual growth rate of 14.5% during the forecast period.
Essential materials for pharmaceutical packaging — such as paperboard, plastic resins, glass, and foils, among other materials — have experienced prolonged supply chain shortages that have impacted the ability to produce the desired packaging. With the advent of COVID-19 vaccine mass production, there also has been a shortage of glass vials. New products, packaging formats and material changes, as well as new equipment integration and even plans for entirely new lines have been disrupted as pharmaceutical companies find themselves searching to obtain the resources necessary to support packaging.
Pharmaceutical Supply Chain Compliance
The pharmaceutical sector is one of the most heavily regulated industries. Anti-counterfeiting and security measures are growing and with even more sophisticated tampering methods it is becoming increasingly complex to prevent fraudulent products from entering the supply chain. Failure to maintain compliance with pharmaceutical supply chains could result in severe treatment outcomes and extensive legal ramifications.
What is the DQSA?
The Drug Quality and Security Act (DQSA), was enacted by Congress on November 27, 2013. Title II of DQSA, the Drug Supply Chain Security Act (DSCSA), outlines steps to achieve interoperability, electronic tracing of products at the package level to identify and trace certain prescription drugs as they are distributed in the United States. This enhances the Food and Drug Administration’s (FDA) ability to help protect consumers from exposure to drugs that may be counterfeit, stolen, contaminated, or otherwise harmful. These requirements also improve detection and removal of potentially dangerous drugs from the supply chain to protect US consumers.
Additionally, the DSCSA directs the FDA to establish national licensure standards for wholesale distributors and third-party logistics providers, and requires these entities to report licensure and other information to the FDA annually.
Mapping supply chains
“While it often may be overlooked, packaging does have the power to stop your supply chain cold,” said Leonardo Bonanni, founder and CEO of Sourcemap, a leader in supply chain due diligence. “There’s no question that end-to-end visibility is crucial to solving costly supply chain disruptions. More specifically, in the pharmaceutical industry, supply chain mapping is imperative not only for compliance and sustainability, but also so patients don’t miss out on critical and necessary medication.”
Packaging is essential to the production, sales, marketing, and distribution of products, and companies should view it as a vital component for a smooth-running supply chain. A properly mapped supply chain safeguards finished products as they move across the entire process, from raw materials to retailers to consumers.
For more information, contact us at info@sourcemap.com.